If you’ve been dying to find the chance to jump in on the rally on USD/JPY, this might be your chance! On the hourly timeframe, it looks like the pair has been consistently bouncing off support at the rising trend line. I have a feeling that price could test support around the 93.00 before extending its run up the charts. But of course, don’t get too excited. A strong break below the major psychological handle could mean that USD/JPY is on its way down to 92.00.
Range on NZD/USD! You diggin’ it? Price is now testing resistance at the range. If we see any candlestick confirmation that it would hold, we could soon see NZD/USD trade around .8300. Be wary of an upside break though. Who knows, Kiwi bulls may step up their game in today’s trading and push the pair past .8500.
Lastly, here’s AUD/USD for all you Fibonacci fan boys. On the 4-hour chart, the pair is trading around resistance at the falling channel and the 61.8% Fib level. To top it off, Stochastic is also showing a bearish divergence, making higher highs while price is making lower highs. I’d understand why you’d be tempted to short the pair. However, be careful. A close around 1.0400 could mean a start of a new uptrend!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.